Healthcare, Education & Personal Services · Seller readiness
Selling a Home Care Agency business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should prepare caregiver, client, referral, payer and compliance data and show that scheduling and relationships do not depend solely on them.
How the business works
Caregiver supply, client retention, bill/pay spread, referral sources, compliance and scheduling density determine quality of earnings.
Issues to resolve
- Caregiver records are incomplete
- Owner controls referral sources
- Compliance files are not transaction-ready
- Client churn is not measured
- Payroll and billing reconciliation is weak
Evidence to request and reconcile
- Client and hours history
- Caregiver roster/payroll/credentials
- Referral-source data
- Billing and collections
- Compliance records
- Scheduling reports
Decision questions
- How many client hours disappear if the top referral source changes behavior?
- What is caregiver turnover by tenure?
- Who owns hospital/case-manager relationships?
- How much working capital is required to fund payroll?
- Are all credentials and compliance records current?